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Kervan USA Launches New Facility in Pennsylvania

Kervan USA's new facility in Lehigh Valley set to improve operations.

News Summary

Kervan USA, a Turkish-based candy manufacturer, has officially begun construction on a $20 million facility in Lehigh Valley, Pennsylvania. This 90,000 square foot site will enhance U.S. operations, consolidating packaging and distribution from New Jersey. The expansion will create about 40 new jobs, boosting the local workforce and contributing to the region’s growing food and beverage manufacturing sector. The investment is part of a broader trend of international companies establishing themselves in Pennsylvania, highlighting the area’s operational advantages and employment growth.

Pennsylvania – Kervan USA, a Turkish-based candy manufacturer, has officially broken ground on a new $20 million packaging and manufacturing facility in Lehigh Valley, Pennsylvania. This facility is expected to enhance Kervan’s U.S. operations significantly and represents a major investment in the region’s food and beverage manufacturing sector.

The new facility, covering 90,000 square feet, is located at the intersection of Lower Nazareth and Bethlehem townships. Kervan USA aims to consolidate its existing packaging and distribution operations from New Jersey into this new site, thus streamlining its manufacturing process. The facility is expected to be operational by next year, with full manufacturing capabilities projected to launch within a few years.

As part of its expansion, Kervan USA plans to hire approximately 40 new employees, which will increase its total workforce in the Lehigh Valley to about 50. This job creation is timely, given the region’s economic focus on the food and beverage manufacturing industry, which has seen a significant increase in employment over the past decade.

One of the key factors influencing Kervan USA’s decision to invest in Pennsylvania was the state’s favorable operational costs compared to New Jersey, alongside the growing local population and strategic location. The company will import candy products via the Port Newark Container Terminal in Newark, New Jersey, for packaging and distribution from the new facility.

The Lehigh Valley has become an attractive hub for international companies, boasting a strong presence of over 100 foreign enterprises, including well-known brands such as Olympus Corporation and Mack Trucks. The region is witnessing notable growth in the food and beverage production field, evidenced by a 52% increase in employment over the last decade, with current numbers nearing approximately 7,100 jobs in the sector.

Kervan USA is known for its gummy, licorice, and marshmallow candies, with a particular focus on its popular brands, Bebeto and Yumy Yumy. Additionally, Kervan produces co-branded candy products for well-known clients, including Crayola. The company’s products are widely available, featured in various major retail outlets such as Walmart, Dollar Tree, Dollar General, and Trader Joe’s.

Recently, the Lehigh Valley Economic Development Corporation (LVEDC) has targeted the food and beverage manufacturing sector for growth initiatives, attracting investments from various companies. Kervan USA’s groundbreaking marks the second announcement of international investment in the area within a week, following the expansion of Bronkhorst, a Dutch company. This illustrates a broader trend of growing confidence in the region’s manufacturing capabilities and its potential for long-term economic development.

Furthermore, other significant investments in Pennsylvania’s food and beverage manufacturing sector include a forthcoming $30 million beverage production facility from Pittston Co-Packers Corp. in Luzerne County, set to create at least 226 jobs. Such developments underscore the ongoing growth and viability of the Lehigh Valley as a key player in the industry.

Overall, Kervan USA’s new facility is poised to not only enhance its own operational efficiencies but also contribute to the burgeoning landscape of food and beverage manufacturing in Pennsylvania’s Lehigh Valley.